Video
applications are by far the biggest driving force behind the increases in
mobile traffic for the past several years and will continue to be for the next
five years as connections increase and networks expand. On a global level,
video is projected to comprise 72 percent of mobile data in 2019, an increase
of 17 percentage points from 2014 (55 percent). While the United States has
certainly been a leader in the growth of mobile connections and traffic, the report
projects the rest of the world will have tremendous growth over the next five
years.

Some key finding
regarding the growth of mobile connections and traffic throughout the world:

Almost
half a billion (497 million) mobile devices and connections were added in 2014.

One of the many innovations in broadband technologies and
applications is the ability to compress data for high bandwidth applications.
This innovative tool expands the consumer base of applications by allowing
users to get the same great experience while using less data, ultimately making
less advanced networks more useful. Embedded within the methodology of the
Cisco report is a 7 percent compression rate over each year of the projection.
This speaks volumes to the projected growth in mobile traffic if we also expect
applications to get smaller overtime (all else equal).

Global Mobile Devices and Connections Growth

Here are some of
the key findings for the United States:

40.7 million smartphones were added to the mobile network in 2014.

Mobile data traffic will grow 7-fold from 2014 to 2019.

Mobile traffic per user will reach 11,510 megabytes per month by
2019, up from 1,960 megabytes per month in 2014, a compound annual growth rate
of 41%.

There will be 290.1 million (86% of the United States' population)
mobile users by 2019, up from 268.5 million in 2014, a compound annual growth
rate of 1.6%.

Mobile data traffic in 2014 was equivalent
to 32x the volume of U.S. mobile traffic five years earlier (in 2009).

North
America, and predominately the United States, has been a global leader in the
development of mobile broadband. North America had 39.1 percent of all global
4G connections in 2014 and that percentage is projected to increase to 42.4 percent by 2019.

The United States’ leadership in the ongoing development of mobile
broadband, devices, and content applications is the result of many economic and
institutional factors. However, it should not go unnoticed that a light-touch
regulatory environment has helped entrepreneurs spur investment in new products
and services through the process of “permissionless
innovation.” As laptops, tablets, phablets, and smartphones have morphed
into each other and become substitutes, competition between them has increased,
reducing the price and increasing the quantity demanded by consumers. This
increase in consumer demand has created more network development, expansion,
and application accessibility.

Additionally, because video currently comprises 55 percent of
mobile data, strong intellectual property rights have also played a pivotal role,
allowing for a growing number of brands in mobile devices and new video content.
It is important for artists, innovators, and service providers to have secure copyrights
and patent rights in order to incentivize returns on creation and investment.
The prospect of profitable returns invites new entrants into the market, which
ultimately leads to more investment and lower prices for consumers.

This report provides very important
information for policymakers. It is essential that the FCC not take for granted
the way in which the development and deployment of mobile networks and
technologies has benefited consumers. As the report recommends, more licensed
and unlicensed spectrum is needed to help meet the constantly growing consumer
demand for advanced services and devices. Understanding of the extent of mobile
data growth and the resulting need for additional spectrum will be crucial for
promoting future U.S. leadership in mobile broadband – as will be the need for
the government to avoid imposing burdensome regulatory requirements in a market
which is indisputably competitive.